Microeconomics sixth edition, Pindyck-Perferred format for answer is either Word or Excel.
Page 379 Problem 8
A firm has two factories, for which costs are given by:
Factory #1 C1(Q1) = 10Q 2
Factory #2 C2(Q2) = 20Q 2
The firm faces the following demand curve:
where Q is total output i.e. Q=Q1 + Q2
B) Calculate the values of Q1, Q2, Q, and P that maximize profit.
The firm's revenue is TR = P*Q = (700 - 5Q)Q = 700 - 5Q^2
Then the marginal cost is MR = dTR / dQ = 700 - 10Q
The firm will max its profit by producing at a level where the ...
Calculate Q Values